Fight For Freelancers NJ, a group of creative freelancers, launched a video series promoting their #IRSnotABC campaign. The Coalition applauds these freelancers for their persuasive campaign opposing an expanded application of an “ABC” test to determine an individual’s status and, instead, supporting the IRS “common-law” test, as we do. Their video series is available here.
Following the adoption of an “ABC” test in California, New Jersey and New York sought to follow suit. While legislative efforts in those states were unsuccessful during 2019, state representatives are trying again during the current legislative session. An analysis of the fundamental flaws of an “ABC” test is available here.
But efforts to expand the “ABC” test have not been confined to state legislatures. The U.S. House of Representatives recently passed the Protecting the Right to Organize Act (“PRO Act”), H.R. 2474, which would adopt an “ABC” test for purposes of the National Labor Relations Act. The PRO Act would represent the first time such test would apply for purposes of a federal statute. A detailed explanation of the case against the PRO Act is available here.
As an alternative to expanding the application of an “ABC” test, the Coalition supports the adoption of a single test – the “common-law” test – to determine whether an individual is an employee or independent contractor. The Modern Worker Empowerment Act, introduced as H.R. 4069 and S. 2973 by Representative Elise Stefanik (R-NY) and Senator Tim Scott (R-SC), respectively, would achieve such a single “harmonized” test for purposes of federal statutes. To learn more about this Harmonization Project click here, or contact us at [email protected].
